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Waste Management, Inc. (WM), headquartered in Houston, Texas, provides environmental solutions to residential, commercial, industrial, and municipal customers. With a market cap of $80.9 billion, the company provides waste management services including collection, transfer, recycling, resource recovery, and disposal services, and operates waste-to-energy facilities. The leading provider of comprehensive waste management services is expected to announce its fiscal fourth-quarter earnings for 2024 after the market closes on Tuesday, Jan. 29.
Ahead of the event, analysts expect WM to report a profit of $1.79 per share on a diluted basis, up 2.9% from $1.74 per share in the year-ago quarter. The company has beat or matched Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect WM to report EPS of $7.32, up 18.3% from $6.19 in fiscal 2023. Its EPS is expected to rise 9.4% year over year to $8.01 in fiscal 2025.
WM stock has underperformed the S&P 500’s ($SPX) 27.2% gains over the past 52 weeks, with shares up 13.5% during this period. Similarly, it underperformed the Industrial Select Sector SPDR Fund’s (XLI) 18.9% gains over the same time frame.
WM's underperformance can be attributed to challenges in waste generation, environmental impacts, and increasing operational expenses. Regulatory changes and competition in the waste disposal sector also pose challenges as companies may need to invest in compliance or face obsolescence.
On Oct. 28, WM reported its Q3 results and its shares closed up more than 5% in the following trading session. Its adjusted EPS of $1.96 beat Wall Street expectations of $1.86. The company’s revenue was $5.6 billion, topping Wall Street forecasts of $5.5 billion.
Analysts’ consensus opinion on WM stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 20 analysts covering the stock, nine advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and 10 give a “Hold.” WM’s average analyst price target is $233.79, indicating a potential upside of 15.9% from the current levels.
